Bill 46 and New Fees Put Thousands of Homes on Hold
The Homebuilders Association of Vancouver (HAVAN) has published a report, Development Finance: New Legislation, New Charges, and the Cost of Delivery Crisis, highlighting the rising costs of housing construction in Metro Vancouver. The report details the impact of Bill 46: Development Financing and the challenges posed by new development charges and increasing construction costs.
With over 73,000 approved homes in the region remaining unbuilt, HAVAN underscores the urgency for stakeholders—governments, developers, and communities—to collaborate and find practical solutions. Bill 46, introduced in 2023, has implemented new Amenity Cost Charges (ACCs) and Development Cost Charges (DCCs) for essential services like fire and police, adding financial burdens and unpredictability for housing projects. In municipalities such as Burnaby and the District of North Vancouver, these charges now constitute 5-10% of total DCC costs.
Wendy McNeil, Acting CEO of HAVAN, stated, "Many approved homes are on hold due to economic uncertainties and thin margins. At a time when we desperately need housing, this is unacceptable." She highlighted the necessity for cooperation and recommended delaying DCC implementation by two years to protect ongoing projects, suggesting a shift in the collection of these charges from the building permit stage to occupancy, as successfully done in other Canadian regions.
The report also notes that in some municipalities, ACC fees for single-family homes have risen by as much as 80% compared to previous charges. HAVAN urges policymakers and industry leaders to address these financial hurdles to ensure that much-needed housing projects move forward.
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